Prepare for Price Negotiations With These Tips

BY Jessica Helinski
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No matter how much value your product or service will bring, there’s a good chance prospects will want to negotiate on price. Because of this, it’s vital that you’re prepared. Joel Goldstein, in an article for Business2Community, writes about the importance of honing negotiation skills. He shares ways to prepare for negotiations over price. Below are a few of his suggestions:

  • Find out who makes the final decision. It is difficult to negotiate properly if you aren’t dealing with a decision maker. Ask the prospect if anyone else will be be involved in the buying decision. Find out early in the sales process to avoid wasted time.
  • Discuss starting price. Make sure the prospect is aware of the price before entering the negotiation stage of the sales process. “If not, the client may enter the negotiation stage assuming your product sells for much lower than it actually does, so there’s a very slim chance he or she will be happy even with a negotiated price,” Goldstein explains. Also, you ensure you’re not wasting time on anyone who is uncomfortable with the initial price.
  • Discuss discounts with your boss. Before negotiations begin, know if your company is willing to come down on cost. If so, be clear about how much. Don't promise the prospect something that you can’t deliver. Also, discuss different scenarios, as counteroffers may be exchanged.

Goldstein’s strategies provide excellent preparation for price negotiations, which will inevitably pop up at some point with a prospect. The more prepared you are, the more likely you can successfully navigate these discussions and close the deal.